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7 Be Responsible

7.3 Sustainability performance

KPMG is committed to further decreasing its CO2 emissions. Following the global ambition set by KPMG

International, KPMG NL aims to contribute to a 15% reduction in Net Greenhouse Gas Emissions per FTE by 2015 (from 2010 baseline). This year, we were able to better collect our gross usage as well as arriving at more accurate conversion factors.

To further decrease our carbon footprint, the Board of Management supports the staff departments of Human Resources, Facilities, Mobility, CSR and Finance to collaborate on their actions, such as, encouraging the use of economical (hybrid) cars, electric cars, use of electric taxis, company bicycles, promotion of fuel- efficient driving, and to encourage HALO and web meetings.

Table 25. Conversion factors per KPMG International.

Category 2012 2011 2010 Gas 0.1748 0.2038 0.2038 Electricity 0.4625 0.5660 0.5660 Petrol 2.3000 2.3117 - Diesel 2.6300 2.6676 2.6720 Other 1.4900 1.4918 1.4920 Rail 0.0350 - - Air flights (average) 0.1639 0.1667 0.1710

The CO2 conversion factors developed by KPMG International are based on generally accepted conversion

protocols such as DEFRA. For air flights detailed factors are available per type (economy class, business class, et cetera). Conversion for car travel is done per litre.

Table 26. Environmental data.

CY 2012 CY 2011 CY 2010

Natural gas consumption (in 1,000 kWh) 5,067 5,368 9,564 Electricity consumption (in 1,000 kWh) 8,701 13,705 13,099 Renewable electricity consumption 95% 94% 92% Paper usage (in kg) 219,429 221,974 250,277 Total waste (in kg) 621,650 613,423 761,386 Recycled waste (in kg) 390,966 429,730 456,832 Water usage (in 1,000 litres) 20,598 30,187 41,884 Air travel (in 1,000 km) 27,017 22,767 16,346 Car travel (in 1,000 litres) 4,140 5,269 5,478 CO2 emissions (in tonnes)

Electricity, Heating & Cooling 4,910 8,851 9,363 Car Travel 12,407 12,722 13,156 Air Travel (average) 3,300 2,776 2,039

Train travel 82 - -

Gross CO2 emission 20,698 24,348 24,558 Emission reductions (renewable energy and VER) -20,698 -24,348 -24,558

KPMG’s Global Development Initiative (GDI) works to apply our skills to the achievement of the UN Millennium Development Goals. Working alongside governments, civil society groups, international agencies and other private sector organisations, we strive to become involved in finding effective and sustainable solutions to global and local poverty issues. The projects we initiate and the cooperation with NGOs or charities we establish, should fit our long-term sustainable agenda and have a strong focus on those MDG that are close to our values, knowledge and experience.

As a member of the UN Global Compact we report, per annum, our progress based on the 10 principles of the United Nations in the Communication On Progress (CoP) report. For the second time, KPMG

participated in the CoP peer review in the Netherlands. Feedback on our progress and the way we rapport about the 10 principles in the CoP report is valuable and support KPMG in narrowing our focus.

Furthermore, we take part in the national Transparency benchmark, organised by the Ministry of Economics. In addition, KPMG reports to the Carbon Disclosure Project, an international, not-for-profit organisation providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information. International Accounting Bulletin (IAB) named KPMG Sustainable Firm of the Year at its inaugural industry awards ceremony in May 2013. IAB judges recognised KPMG as the only professional services organisation at a global level to participate in the supply chain programme of the Carbon Disclosure Project.

7.3.1.1 KPMG’s commitment to BRIGHT

BRIGHT launched in 2010 as KPMG’s first cross-border CSR programme to support the UN Millennium Development Goals. BRIGHT has two components as it encourages our people to use their skills and expertise to Act Locally and Globally. Locally, people in our KPMG member firms are encouraged to apply for BRIGHT by submitting a BRIGHT idea regarding socially or environmentally innovative ways they can support the local community. The winners are then supported by their CSR team to implement their ideas in the local community. Additionally, they are invited to apply for a global pro bono placement to use their skills to support our BRIGHT community partners in sub-Saharan Africa: Fairtrade, Restless Development and Child Helpline International. Our people work with their colleagues in multi-national and multi- disciplinary teams to take up specific technical placements supporting NGO capacity building; Enterprise Development and Employability training.

BRIGHT achievements to date:

• Award-winning (Best Pro Bono Programme – 2013 Corporate Engagement Awards); • 120+ BRIGHT participants from 17 KPMG practices;

• 10 countries in sub-Saharan Africa and Asia;

• More than 11,444 pro bono hours worth EUR 4.1 million +.

7.3.1.2 KPMG’s commitment to Millenium Villages

17 KPMG member firms, amongst KPMG the Netherlands, have come together to fulfill a USD 1.5 million commitment to support the development of the Millennium Village of Kiuyu Mbuyuni – a small village on Pemba Island, Tanzania in sub-Saharan Africa. The venture is part of the Millennium Villages Project (MVP), a partnership between Millennium Promise, the Earth Institute at Columbia University and a Tanzanian NGO, PHL-IdC.

The Millennium Villages project is based on a simple idea: impoverished communities can transform themselves and meet the Millennium Development Goals if they are empowered with proven, practical technologies. By investing in health, food production, education, access to clean water and essential

infrastructure, these community-led interventions will enable the community to escape extreme poverty. For Kiuyu Mbuyuni to become truly self-sustaining, the focus for 2014 will be on further developing, e.g. the seaweed and fishing industries, to ensure that income coming into the village can sustain the rate of

development realised through KPMG’s support. The intention for the village is for it to be self-sustaining by 2015. This means that the community will take on more responsibility and local and national governments will fund and staff new healthcare facilities and schools, and will commit to maintaining the infrastructure KPMG have helped develop.

7.3.1.3 KPMG’s commitment to Women’s World Banking

In July 2013, KPMG International signed the Women’s Empowerment Principles (WEP), endorsing the joint United Nations Women and UN Global Compact’s initiative to advance equality between men and women. The principles present seven steps that business and other sectors can take to advance and empower women

in the workplace, marketplace and community. The Women in Leadership Programme, hosted and sponsored by KPMG the Netherlands, in cooperation with Women’s World Banking is a community programme that honours the principles. The programme created in 2011 envisioned that women leaders of microfinance institutions across the world are supported in understanding their unique leadership style and building key leadership capabilities including strategic thinking, making good decisions, and creating and nurturing challenging and supportive relationships. During the six days’ conference programme on site at a KPMG office, the female leaders of microfinance institutions are linked to mentors who are senior women of KPMG and/or KPMG business relations. With ongoing remote support and mentoring, participants develop a vision for their leadership and create an action plan to achieve this vision in which they are supported by their mentor over the subsequent year. In 2012, sixteen coaching couples were formed.

7.3.1.4 Voluntary work

7.3.1.4.1 NL Doet and Make it Happen Fund

As in previous years, KPMG actively encourages colleagues to take on voluntary work. From the corporate organised activities during NL Doet, to financially supporting KPMG colleagues who are already active for an NGO or charity, to apply for a donation from the KPMG Make it Happen Fund.

7.3.1.4.2 Serious Request

In December 2012, on behalf of KPMG a check for EUR 175,000 was handed to the Glass House (Serious Request action) to support the Red Cross in particular in their struggle to prevent the death of many (unborn) little babies. It was a special happening for the entire Dutch KPMG practice, who brought together this record amount by organising all kinds of activities in December 2012: a bicycle ride from Groningen to Enschede, Christmas gift donations and auctions are a few examples of how the KPMG colleagues raised money in a cheerful way.

7.3.1.4.3 Battle of the Business Bands

For the third year in a row, KPMG hosted the Battle of the Business Bands. A musical challenge were company bands compete for the title ‘best business band of the year’. The bands are judged on both their musical and stage performance as well as their commitment to raise money for Unicef. Over the three years the participating bands succeeded in raising approximately EUR 50,000 for Unicef.

8 Statement on effectiveness of quality controls and

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